"Do not be mellowed by the affirmation of a 2 percent target rate of inflation here in the U.S. or as targeted in six of the G-7 nations," Gross writes in his latest investment letter.

"Not suddenly, but over time, gradually higher rates of inflation should be the result of QE policies and zero bound yields that were initiated in late 2008 and which will likely continue for years to come."

We are hooked on cheap credit just as cartoon character Wimpy was hooked on Friday’s burgers, says Gross, who advises bond and equity investors to focus on securities with shorter durations such as bonds with maturities in the five-year range and stocks paying dividends that offer 3-to–4 percent yields.

"In addition, real assets/commodities should occupy an increasing percentage of portfolios," says Gross. "Wimpy would not be pleased by this change of diet nor by the cost and risk of burgers for delivery next Tuesday."

"But for him, and for central bankers, the hope is that Tuesday never comes."

Government stimulus, Gross notes, created credit at the stroke of a pen or a touch of the keyboard in today’s electronic monetary system.

“Since the early 1900s, and especially since 1971, it has been done so often that prices of goods and services are 400 percent of what they were when President Nixon decided to propel central banking to another orbit,” says Gross.

“We are all central bankers now, at least from the standpoint of endorsing stimulative policies that permit Wimpy and his seven billion counterparts to keep on eating burgers, and their lenders, by the way, to keep on coining profits.”

Reuters reports that New York Federal Reserve Bank president William Dudley says the Fed’s new inflation target is an example of the kind of steps policymakers globally should take to bolster cross-border coordination and stabilize the economy.